Key Takeaways
- • Blackstone, Starwood Capital, and Greystar received failing F grades in ShareAction's climate performance evaluation of 16 global real estate investment managers, with none meeting any of 12 key carbon reduction standards.
- • Nine of 16 managers achieved less than half of ShareAction's climate standards, indicating systemic underperformance across the industry despite real estate accounting for over one-third of global annual carbon emissions.
- • The 16 managers evaluated collectively control $1.66 trillion in real estate assets under management, making their climate inaction particularly material to institutional investors and portfolio risk exposure.
- • Nrep (Denmark-based) was the only manager to achieve an A grade by meeting all 12 standards; Savills Investment Management, Patrizia, Heimstaden, and Prologis achieved B grades, demonstrating that climate leadership is achievable at scale.
- • ShareAction's findings align with a Bisnow 2023-2024 investigation showing nearly 50% of the world's 75 largest REITs, fund managers, and direct property owners lack formal carbon reduction plans, suggesting widespread ESG governance gaps.
Summary
ShareAction, a UK-based nonprofit investor advisory organization, released a climate performance report Wednesday evaluating 16 of the world's largest real estate investment managers on their carbon reduction commitments and implementation. The assessment found substantial deficiencies across the industry's largest players. Blackstone, Starwood Capital Group, and Greystar each received F grades—the lowest possible rating—failing to achieve even a single one of ShareAction's 12 key standards for emissions reduction and climate action. Brookfield Asset Management and Partners Group received E grades, one step above failing. Overall, nine of the 16 managers evaluated scored below 50% on ShareAction's framework.
The 16 managers under review collectively manage $1.66 trillion in real estate assets, giving their climate performance outsized significance for institutional investors concerned with transition risk and portfolio resilience. Aidan Shilson-Thomas, ShareAction's research manager for climate change, emphasized the urgency of the findings, stating: "I think that in 2025, off the back of the hottest year on record, it's concerning that some investment managers still have not publicly disclosed at least a net-zero commitment." Real estate is particularly material to climate considerations, accounting for more than one-third of global annual carbon emissions.
The top performers offer a counterpoint to widespread underperformance. Nrep, a Denmark-based fund manager, achieved the only A grade by meeting all 12 of ShareAction's standards. Four managers—Savills Investment Management, Patrizia, Heimstaden, and Prologis—earned B grades, demonstrating that comprehensive climate governance and emissions reduction are operationally feasible at institutional scale. ShareAction's report, titled "Built to Last?", underscores the variance between leaders and laggards.
The findings corroborate earlier independent research. A Bisnow investigation conducted in 2023 and 2024 found that nearly half of the world's 75 largest REITs, real estate fund managers, and direct property owners had not established any formal plan to reduce carbon emissions. ShareAction acknowledged that its 16-manager sample was not intended to be representative of the broader industry, though the scale and influence of the evaluated firms make the results particularly relevant for asset owners evaluating manager selection and stewardship practices.
The 16 managers under review collectively manage $1.66 trillion in real estate assets, giving their climate performance outsized significance for institutional investors concerned with transition risk and portfolio resilience. Aidan Shilson-Thomas, ShareAction's research manager for climate change, emphasized the urgency of the findings, stating: "I think that in 2025, off the back of the hottest year on record, it's concerning that some investment managers still have not publicly disclosed at least a net-zero commitment." Real estate is particularly material to climate considerations, accounting for more than one-third of global annual carbon emissions.
The top performers offer a counterpoint to widespread underperformance. Nrep, a Denmark-based fund manager, achieved the only A grade by meeting all 12 of ShareAction's standards. Four managers—Savills Investment Management, Patrizia, Heimstaden, and Prologis—earned B grades, demonstrating that comprehensive climate governance and emissions reduction are operationally feasible at institutional scale. ShareAction's report, titled "Built to Last?", underscores the variance between leaders and laggards.
The findings corroborate earlier independent research. A Bisnow investigation conducted in 2023 and 2024 found that nearly half of the world's 75 largest REITs, real estate fund managers, and direct property owners had not established any formal plan to reduce carbon emissions. ShareAction acknowledged that its 16-manager sample was not intended to be representative of the broader industry, though the scale and influence of the evaluated firms make the results particularly relevant for asset owners evaluating manager selection and stewardship practices.
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